# Energy independence becoming key for Europe

By Bryn Jones — 2026-07-27

Bryn Jones, head of fixed income at Rathbones Asset Management, said: “Natural gas inventories are at record lows in Europe at a time they should be increasing to build stocks for the winter. Energy independence is becoming key for Europe.

“Last week the EU unveiled an electrification action plan to make Europe the world’s first “electro-powered” continent. By doubling electrification to 46 per cent by 2040, the EU could save well over €250 billion annually on fossil fuel imports.

“Compared with 2021–22, Europe is better positioned to withstand disruptions to gas supply. Dependence on Middle Eastern LNG remains limited, with Qatar providing only a small share of imports approximately six per cent, while the US has become the dominant supplier.

“With LNG accounting for about 50 per cent of EU gas imports, the region’s supply base is significantly more diversified than during the energy crisis.

“Of course, Europe has relaxed rules in filling of natural gas and, as forward curve is negative, this waiting might have more to do with price than availability.

“However, we can’t ignore the fact that the Strait of Hormuz and the Red Sea are putting pressure on prices globally – and do create inflation.”

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